Stock With Momentum: South Malaysia Industries
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Stock With Momentum: South Malaysia Industries
Stock With Momentum: South Malaysia Industries
By Asia Analytica / The Edge Financial Daily | May 30, 2016 : 10:32 AM MYTThis article first appeared in The Edge Financial Daily, on May 30, 2016.
South Malaysia Industries Bhd (+ve)
SHARES in South Malaysia Industries Bhd (fundamental: 1.35/3, valuation: 0.9/3) triggered our momentum algorithm for the first time this year. The counter closed up one sen or 6.3% higher at 17 sen last Friday, with some 3.7 million shares traded.
South Malaysia Industries is principally involved in property development and the manufacturing of wire products.
For the first financial quarter ended March 31, 2016 (1QFY16), the company reported a 161% jump in net profit to RM1.46 million, as a result of a higher property development profit recognised.
Quarterly revenue for 1QFY16 declined by 12.7% to RM20 million as a result of lower manufacturing sales.
The stock is currently trading at 0.25 times its book value.
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